Transitions into and out of the labour force:
A)rarely occur.
B)do not affect unemployment statistics.
C)make the interpretation of unemployment statistics complicated.
D)reduce the amount of frictional unemployment.

Question

Quizplus · Accepted Answer

Transitions into and out of the labor force can complicate the interpretation of unemployment statistics because they affect the labor force participation rate and can lead to changes in the unemployment rate that do not necessarily reflect changes in the number of people who are actually unemployed.

Transitions into and Out of the Labour Force